Treasurer Happy With Central Bank Modernisation

by PNG Business News - January 05, 2022

Photo credit: Post Courier - Treasurer Ian Ling-Stuckey

Treasurer Ian Ling-Stuckey is delighted with the work being done to put the modifications to the Central Banking Act into effect, which were voted unanimously by Parliament last December 2021.

Treasurer Ling-Stuckey stated in a statement that following the NEC's decision on a new Acting Governor, Benny Popoitai, the former Head of Financial Analysis and Supervisory Unit and former Deputy Governor, will be sworn in as Acting Governor.

This, according to Ling-Stuckey, is the beginning of the reform process to modernize BPNG by increasing governance, accountability, and independence.

“The reforms are the result of a comprehensive consultation process involving key firms and institutions in PNG, other central banks in our region and the IMF. The nation must say thank you to the Independent Advisory Group that led these consultations and their 132-page report on reform options.  

“The Government has carefully considered these recommendations and is now proposing specific reforms,” he said. 

It was regrettable, according to Treasurer Ling-Stuckey, that the former Governor refused to engage with the review process, declining several requests for meetings and failing to designate any BPNG officials to the review Secretariat.

“The former Governor wrote to the Prime Minister protesting the review. The time for his input was in the preparation of recommendations to the government from the IAG. He constantly declined to cooperate. It is disappointing that he is now claiming inadequate consultation with himself,” said Ling-Stuckey. 

He added further, “The government considered the recommendations of the IAG review and inputs on the recommendations were provided by the IMF, Treasury and eventually even BPNG.  

“These were considered by the government and built into the drafting instructions for the State Solicitor and the First Legislative Counsel. The changes received the unanimous support of the Parliament, including being praised by the Leader of the Opposition.”  

Treasurer Link-Stuckey urged the outgoing Governor to embrace Parliament's unanimous decision and facilitate a smooth transition to a revamped BPNG.

 

Reference: Loop (2 January 2021). “Modernising PNG’s Central Bank”. 



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